- Posted March 24, 2014 by
How To Save Money When Buying a Car
In today’s consumer landscape, it’s hard to know what to believe and what not to believe from car dealership advertising. Here are a few points for ensuring that a dealership ad is legitimate:
- If you see the phrase “x amount of dollars off,” make sure it says “off of MSRP.” If it doesn’t specify, then most likely there is an additional mark-up for the car that negates the discount.
- Read the fine print and make sure that the advertised deal doesn’t include rebates that most consumers wouldn’t qualify for and might not be able to be combined.
- If the ad says money down then be aware that potentially thousands of dollars in inception fees can still be added to the deal when you get to the dealer. Look for the term “due at signing” to really know how much you will be responsible for if you wish to get an advertised deal.
Source : http://www.driveprime.com
Vehicle gap insurance is one of those products that seems like a waste of money until you need it. In fact, unless you have ever experienced a total loss in a vehicle accident you may be unaware of the value this type of policy can have for a consumer. Most auto insurance policies are designed to only cover the vehicle’s current cash value, not the loan balance, when a total vehicle loss occurs. Many times the difference can be thousands of dollars.
According to Edmunds.com, the average vehicle loses thirty percent of its value in the first year. Let’s look at how this plays out in the numbers. If you buy a twenty five thousand dollar vehicle and a total loss happens in the first year the insurance company is likely to only cover eighteen thousand dollars of the loss. Depending on your down payment or trade equity, that could put you on the hook for the up to seven thousand dollar difference. So if you have a small down payment or a loan with an extended term then auto gap insurance may be for you.